Seven former Deutsche Bank managers were convicted by a German court of participating in a conspiracy to cheat on value-added tax refunds for carbon-emissions trading.
Bloomberg News reports that the bankers participated in a “criminal business model,” said presiding judge Martin Bach. One of the men was sentenced to three years in prison while the other six escaped prison with suspended sentences or fines.
The case is part of the biggest crackdown on emissions-related tax crimes since the European Union began its cap-and-trade system in 2005 and saw police raid Deutsche Bank twice over three years. The lender, the bank, stopped trading emission certificates in 2010 and repaid $248m of illicit tax refunds uncovered during the investigation.
Prosecutors had asked for terms of as much as four years for three of the accused and for suspended terms the rest. Defense lawyers sought acquittals.
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